Trump May Not Need to Pull Trigger on Tariffs, Economist Says

Economists near-universally warn that President-elect Donald Trump’s pledge to impose “across-the-board” 20-percent tariffs on imports will trigger inflation, disrupt domestic industries, and spur global trade wars. Despite overwhelming critical consensus, Trump calls tariffs “the most beautiful word in the dictionary” and hasn’t backed down since his Nov. 5 reelection. But the threats may be a “negotiating tactic” to give the United States leverage in mediating trade pacts, Peterson Institute for International Economics (PIIE) President Adam Posen said during a Nov. 14 virtual event. And it may be working already. Japan, South Korea, the United Kingdom, Canada, “and maybe some others, are likely lining up offers,” he said. “These offers will be in the form of, ‘We promise to buy more natural gas from the U.S. … We promise to move more production to the U.S.’”...